November Architecture Billings Index Second Highest of the Year | Facility Executive - Creating Intelligent Buildings

After consecutive months of very modest growth, the Architecture Billings Index (ABI) saw a considerable jump in November to its second highest reading of the year. The commercial/industrial sector recorded its best mark of the decade. With an approximate nine to 12 month lag time between architecture billings and construction spending, the ABI is a […]

November Architecture Billings Index Second Highest of the Year

December 20, 2006

November Architecture Billings Index Second Highest of the Year | Facility Executive - Creating Intelligent Buildings

After consecutive months of very modest growth, the Architecture Billings Index (ABI) saw a considerable jump in November to its second highest reading of the year. The commercial/industrial sector recorded its best mark of the decade.

With an approximate nine to 12 month lag time between architecture billings and construction spending, the ABI is a leading economic indicator of construction activity and should translate into a high level of activity throughout 2007. The American Institute of Architects (AIA) reported the November ABI rating was 57.5 up sharply from 51.1 in October (any score above 50 indicates an increase in billings).

“The nonresidential construction sector continues to see a high level of demand for design services,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “Even though there has been some deceleration in growth the previous two months, an uptick in billings of this size is noteworthy in portending sustained construction activity in the months ahead.”

Matthew A. Litfin, an equity research analyst with William Blair & Company, stated, “The spike in the ABI this month reflects reinvigorated design activity, now that national elections have concluded and future interest rate policy is clearer. The November ABI reading is near record levels last seen in fall 2005 and before that, in mid-1998. Looking ahead to 2007, we are predicting very strong growth in nonresidential construction activity and stabilization in residential construction activity.”

Deere & Company (NYSE: DE) has signed a definitive agreement to acquire the Wirtgen Group, a privately-held international company that is the leading manufacturer worldwide of road construction equipment.

The study, conducted by Ponemon Institute and sponsored by IBM Resilient, found that 77% of respondents state they do not have a formal cyber security incident response plan applied consistently across their organizations.

Nations around the world are increasing their defense budgets; the sophisticated weaponry of the U.S. aerospace industry guarantees it will get a big slice of the pie. - Read: Defense: The Best Offense at BusinessFacilities.com.

The new specialty oils processing facility will result in 39 new direct jobs in Jefferson Parish, with the help of the LED FastStart workforce training program. - Read: Fuji Vegetable Oil Investing $70M In Louisiana Production Facility at BusinessFacilities.com.

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